What is Postponed VAT Accounting?
Postponed VAT Accounting (commonly known as PVA), is a system that allows importers to account for import VAT on their VAT return instead of paying it at the point of entry. This improves cash flow by offsetting import VAT (input tax) against output tax on the same return.
To use PVA, the importer must have a VAT-linked EORI number and include their VAT number on the import declaration. The import VAT is recorded on the Monthly Postponed Import VAT Statement (MPIV) and declared on the VAT return.